Best Term Insurance Plan in India for Senior Citizens

As we grow older, our needs change. We need to pay more for health care and sometimes for other things too. Besides, some people want to make sure that their family is protected even after the person is no more. In fact, this is one of the reasons why people opt for term insurance.

Simply put, a term insurance plan is a contract between you and an insurance company in which the insurer agrees to pay a certain sum of money to your family if you die during the policy term. It is simple, affordable, and easy to understand. Even now, a large number of insurance companies in India have term insurance products that can be bought by elderly people as well.

Hence, if you want to buy the best term insurance plan in India for elderly people, read this guide immediately so that you know what features to check for.

What is Term Insurance?

Term insurance is a simple form of life insurance. It commits your family to a definite sum of money should you pass away within the policy period. So if you purchase a cover for ₹25 lakh and you meet with an unfortunate event within the term of the cover, your family will get the ₹25 lakh.

Ordinarily, term insurance is more of a protection plan than a life insurance plan, as it does not combine a savings or an investment element. For this reason, it tends to be more economical. Besides, there are lots of companies that now provide term insurance to senior citizens as well, so the elderly too can get financial security.

Why should senior citizens consider term insurance?

It is quite common to associate insurance with young people only. However, this stereotype is incorrect. Senior citizens can also take advantage of term insurance. Here are some of the ways it can be beneficial.

• Family Servicing: There are quite a few elderly people who are still providing financially for their spouses or children. In such cases, term insurance can be a viable option for turning the family’s financial burden into a manageable one.
• Medical Expenses: Medical expenses keep on rising not only in India but worldwide. If an insurance payout comes one’s way, it becomes easier for the family members to arrange funds for hospital bills and any other health-related expenses.
• Loan Protection: There are cases where people have taken housing loans or personal loans, and the loan repayment period extends to the post-retirement period. Insurance comes in handy for loan repayment and thereby protects the family assets from being liquidated.
• Peace of Mind: This is the last but not the least benefit that one can think of when getting an insurance cover, the peace of mind it provides by way of ensuring that one’s family’s financial needs are taken care of in his/her absence.

Important factors to consider before selecting any plan

While choosing from among the best term insurance plans in India, senior citizens should focus on certain major areas.

Entry Age

Entry age limit varies from one insurance company to another. Some plans allow entry only till 60 years, while some others extend the entry age limit to 65 or even 70 years.

Policy Term

The duration for which your insurance will be valid is the policy term. Generally, the policy term for seniors is less than that for younger customers.

Premium Cost

Due to increased health risks with age, an elderly person’s insurance premiums tend to be more expensive. To get a fair deal, it is better to do a price and benefits comparison of the products offered by the different insurers.

Medical Checkup

Normally, older applicants are required to undergo a medical examination by the insurer to determine their health status before issuing a policy.

Claim Settlement Ratio

Claim settlement ratio is the ratio of claims that an insurance company has actually paid to that it has received. Generally speaking, the higher the ratio, the more a company can be presumed trustworthy.

Characteristics of the Best Term Insurance Plan in India

Looking for the best term insurance plan in India? Then you should pick plans that have the following facilities:

• Plain and comprehensible policy wordings
• Reasonably priced premium
• Ability to extend or shorten policy length
• Comfortable and accessible claim procedure
• Significant claim settlement rate

Many policies even let you take riders. Riders are additional advantages that you may put in your insurance policy.

For instance:

• Protection against major diseases
• Additional sum assured on death due to accident
• Insurance against loss of earning capacity due to disability

The above-mentioned riders give enhanced coverage and may render the policy more advantageous.

Advice to Buy Term Insurance for Senior Citizen

Sometimes people buy term insurance only to find out later that it is difficult to buy term insurance for senior citizens. Follow these simple tips to make it easier for you:

• Buying early is better: When you purchase the insurance early, your premium might be less. Even buying in your late 50s is a better option than waiting until your late 60s.
• Comparison of different products is a must: Do not decide on the spot. Look at different policies & brands.
• Don’t conceal your health condition: You must give the truth only. Afterwards, hiding facts can make the claim rejected.
• Right sum assured should be selected: Determine a sum assured that can take care of your family even if you are not there.
• Choose recognized insurance providers: Usually, these insurance companies have better and faster claim settlement as well as customer support.

Common Mistakes to Avoid

People sometimes buy insurance through simple errors.

Be careful not to:

• Pick too low coverage level
• Overlook the policy details
• Forget to check the claim settlement ratio
• Get one without seeing what else is available first

Spending some time doing a little research will help you in getting the correct policy.

Conclusion

The main aim of life after 60 is to be stress-free and very comfortable. With financial planning, it is possible to achieve this goal. One single step in buying a good term insurance plan in India would go a long way in protecting your family and giving you peace of mind. Presently, a good number of insurance companies in the country have made available term insurance for senior citizens, which makes it even easier for you to keep yourself financially equipped.

If you want to purchase a policy, be sure to spend some time looking at the different ones, find out what each one has, and select the one you trust most. A very simple thing that you do today can ensure that your loved ones will have solid financial protection tomorrow.